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Financial Sector Update for 02/14/2017: OMF,ZAIS,PFLT

Top Financial Stocks

JPM +1.29%

BAC +3.06%

WFC +1.23%

C +1.78%

USB +0.68%

Financial stocks were again leading the U.S. markets higher, with the NYSE Financial Sector Index rising around 0.5% while financial companies in the S&P 500 Index were gaining nearly 1.2% on Tuesday.

In company news, OneMain Holdings ( OMF ) rose Tuesday after the specialty lender swung to a FY16 profit from a net loss during the previous year while its Q4 adjusted net income and revenue was sharply higher compared with the same quarter last year.

Net income for the 12 months ended Dec. 31 was $215 million, or $1.59 per share, versus a net loss of $220 million and $1.72 per share during the prior year.

Excluding one-time items, OneMain's consumer and insurance operations generated Q4 adjusted earnings of $108 million, or $0.80 per share, up from $89 million and $0.66 per share during the year-ago period but narrowly missing the Capital IQ consensus by $0.01 per share.

Total revenue, as measured by a combination of net interest income and other revenues, grew 22.5% over the same quarter last year to $714 million, also lagging the $815.98 million consensus estimate, if comparable.

OMF shares were up almost 10% at $26.73 apiece in recent trade, earlier topping out today at $27.27 a share.

In other sector news,

(+) ZAIS, (+120.4%) Board chairman, chief investment officer Christian Zugel says in a regulatory filing he owns over 1.13 mln ZAIS shares, equal to a 7.5% stake.

(-) PFLT, (-2.7%) Prices $70.4 mln offering of 5 mln shares of common stock at $14.08 apiece, although the company's advisor - PennantPark Floating Rate Capital - pays 46 cents per share to underwriters to make up the difference between the actual $13.62 a share offering price.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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